Aleksender Barentsen andFabian Schar in this article introduces the cryptocurrency and mostly about thebitcoin that has been so popular in the present world.
According to thearticle, bitcoin started, “under the pseudonym ‘Satoshi Nakamoto'” (p. 1). Theauthor presents motivation of bitcoin’s creator as, “to develop a cash-likepayment system that permitted electronic transactions but that also includedmany of the advantageous characteristics of physical cash.” In the article,many other monetary methods are shortly described like those of the cash(physical), digital cash (nonphysical, absence of authority for book keeping),electronic payment system (nonphysical, ledger maintained by legalizedauthority like bank) and the Stone of Yep. According the author, bitcoinresembles the stone of Yep and Yep is the island where large stones are used asthe method for exchange. Author defines bitcoin as, “a virtual monetary unitand therefore has no physical representation” (p. 4).
And bit chain is like aledger of bitcoin where we can view all the transection involved and madepublic to anyone. So, the transaction in bit chain is transparent. For doinganything related to bitcoin, one should have a software called bitcoin wallet.One should have an account on it and that account holder can add the balance inthe account through the exchange of fiat currencies.
Now here the author comeswith new title, ‘bitcoin mining’. According to the authors, bitcoin mining isthe work of “highly specialized hardware and access to cheap electricity” (p.6). Bitcoin mining is the work of block candidates which is a troublesomeprocess to find hence results in “fierce competition in the world” (p. 7) forbitcoin mining. Finding new block candidates that are generated every tenminutes has a reward of certain bitcoin value which controls the monetary inbitcoin mining.
The author says, “The Bitcoin creators’ intention was todevelop a decentralized cash-like electronic payment system” (p. 14). So according to the author, these cryptocurrencieshas some values in the world that should not be neglected rather it may bringnew future to the world.